What is the Difference between a Merchant Services Provider and a Payment Processor?
A merchant services provider delivers a comprehensive, end-to-end payment solution. This includes supplying POS hardware like terminals and card readers, setting up and underwriting merchant accounts, providing ongoing support, and offering transparent pricing models. They act as a full-service partner for your business operations.
In contrast, a payment processor serves a more limited, technical function. Its primary role is to route transaction data between a merchant’s terminal and the acquiring bank. Payment processors typically do not provide hardware, do not offer direct account management, and often provide minimal support.
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